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Ghana News

Bank of Ghana advises borrowers to carefully consider loan repayment capabilities

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The Bank of Ghana (BoG) has advised Ghanaians on the importance of carefully assessing their repayment capabilities before acquiring any loan facility from banks or specialized deposit-taking institutions.

According to the Bank, customers should not rush to obtain loans without first evaluating their ability to repay. Additionally, borrowers are encouraged to seek multiple loan offers from different lenders and compare them before making a decision.

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Before entering into a loan agreement, lenders are required to provide potential borrowers with a “Pre-agreement Truth” in Lending statement, which summarizes the terms and conditions associated with the loan.

Customers should pay particular attention to the interest rate, which is expressed as the Annual Percentage Rate (APR). The APR is the total cost to be paid to the lender each year for the loan, including all fees and charges associated with the loan.

The BoG stated that the APR provides a more comprehensive measure of the cost of taking out a loan, as it includes not only the interest rate but also all additional fees and charges.

In conclusion, the Bank of Ghana advises all loan seekers to exercise due diligence before acquiring any loan facility. By carefully evaluating their repayment capabilities and comparing loan offers from different lenders, customers can make informed decisions and avoid financial difficulties in the future.

Source: Bank of Ghana (BoG)

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